A minor bounce in the Swiss overnight appears to be primarily technical in nature. However, the bounce in the Swiss should set the stage for a negative reaction to US payrolls, especially if the report meets expectations. The biggest argument for the bull camp is the oversold technical condition from the last 4 weeks compacted decline!
Technical Outlook: The market was pushed to a new contract low. Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day moving average is a negative short-term indicator for trend. The market setup is somewhat negative with the close under the 1st swing support. The next downside objective is 97.57. Selling may soon dry up since the RSI is under 20 indicating the market is extremely oversold. The next area of resistance is around 98.68 and 99.10, while 1st support hits today at 97.92 and below there at 97.57.